Cost of a Remodel vs. the Cost of Moving
Have you outgrown your home? Does it feel outdated? Do you feel cramped and need space? Before you decide to make a major move and contact a real estate agent, we want to provide you with some information about moving versus home remodeling.
Home Is Where the Heart Is
Is there still love for your home? Beyond wanting more space or an updated home, there are a multitude of reasons to consider when deciding to move or to stay. Deciding to leave your neighbors and close friends can be emotional. Other major factors include school district and community. Starting over in a new place can be daunting. All of these factors play into the decision of whether to move or stay put.
Three Reasons Why Homeowners Choose Remodeling Over Moving
Beyond the emotional consideration of owning a home, there are external factors why homeowners are choosing to stay. The home improvement industry has reported a sharp rise in remodeling spending. Three reasons why home owners are choosing remodeling over moving: shortage of inventory of homes for sale, rising rates of mortgages, and access to more home equity.
1. Inventory Shortage
Low housing inventory has contributed to a spike in remodeling as buyers pour money into their current homes instead of moving — often using home equity to do it.
2. Rising Mortgage Rates
With mortgage rates expected to rise in the coming years, some may not move. The Mortgage Bankers Association predicts rates on 30-year fixed-rate mortgages will rise to an average of 5.3% by end of 2019.
3. Increase in Home Equity
Tapping into home equity, home-improvement spending is expected to reach its highest level in a decade by early next year, according to Harvard University’s Joint Center for Housing Studies.
The Cumbersome Cost of Moving
Whether you are thinking of moving out of state or staying local, there are many factors to consider with moving, which is a cumbersome process. Here are three cost factors to consider before you make that major move.
1. Cost Factors
Whether local or out-of-state, the cost of moving can be costly. Additional costs of transportation, storage and supplies should also be budgeted with your move.
2. Avoiding Scams
The number of complaints against moving companies has increased steadily over the past decade. Two scams to watch out for are the hostage-goods scam and the advance-deposit scheme.
3. Is New Home Move-In Ready?
Compare the cost of home improvements to your current home vs. a new home.
Your Home Value and Peace of Mind
Considering the costs of moving, the lack of quality inventory in the current real estate market, and the increase in mortgage rates, many homeowners are choosing to remodel. The benefits of tapping into your current home’s equity to remodel your home not only creates peace of mind in your new space, but also will add value to your home. Raise the value of your home with a remodel today.